The European Green Deal sets a clear direction for Europe’s decarbonization and transition to a circular economy by 2050. Plastics and packaging have been identified as key value chains with significant cyclical potential, which will require further regulatory action to reduce their environmental footprints.
The private sector has a vital role to play, supported by policy that fosters innovation, encourages the adoption of sustainable technologies and provides legal certainty so that private investment goes where it is needed most. For example, the packaging value chain is innovating to develop new alternatives, such as flexible pouch packaging, that reduce the carbon footprint of packaged goods versus rigid materials. Initially, these pouches were not easily recyclable, but thanks to innovation, they are now designed to be recycled. In addition, a thriving ecosystem of European startups is developing technologies such as chemical recycling, which can complement traditional mechanical recycling to recycle more packaging. Ambitious recycled content targets, including targets for food contact packaging, and legal recognition of these new technologies are essential to support Europe’s leadership role in achieving circularity.
Ambitious recycled content targets, including targets for food contact packaging, and legal recognition of these new technologies are essential to support Europe’s leadership role in achieving circularity.
Fostering innovation through progressive regulation
Chemical recycling is a group of technologies that provide solutions where mechanical recycling has limitations. This is particularly relevant for high-performance regulated applications – such as food and automotive – where mechanical recycling may not deliver on recycled-content targets due to performance limitations and regulatory restrictions. Using recycled plastics in food packaging, with the exception of PET bottles, is a particular challenge given the strict legal requirements to protect the safety of food contact materials.
The only way to reach recycling targets for flexible food packaging would be to use chemical recycling, which replaces fossil-based raw materials with plastic waste as raw materials. This ensures that food packaging can be repurposed as food packaging. In addition to solving the issue of plastic waste, chemical recycling reduces the need for virgin fossil feedstock, further improving the carbon footprint of plastics.
The only way to reach recycling targets for flexible food packaging would be to use chemical recycling, which replaces fossil-based raw materials with plastic waste as raw materials.
Increasing chemical recycling will be critical to addressing the use of recycled plastics in the EU today with nine million tonnes of demand for polyethylene and polypropylene in food packaging, which is expected to increase with revised packaging regulations. Consumer goods companies have already said they would collectively seek to buy 800,000 tonnes of chemically recycled packaging material in 2030, a sign that shows how important these technologies are to the circularity of packaging in Europe.
To help meet the growing demand for recycled plastics, Dow has partnered with and invested in a number of startups across Europe to develop and scale chemical recycling. In France, we supported Valorgen in developing the country’s first plant combining mechanical and chemical recycling to achieve optimal outputs under the EU waste hierarchy. In Europe and the Americas, in partnership with Mura Technology, we aim to build multiple world-class advanced recycling facilities, collectively targeting 600,000 tonnes of annual recycling capacity globally by 2030. Alternative feedstock to deliver circular and renewable solutions to three million metric tons per year by 2030. The first plant will be in Bohlen, Germany, co-located with our manufacturing site to improve yield and greenhouse gas savings, and should be operational in 2025.
To help meet the growing demand for recycled plastics, Dow has partnered with and invested in a number of startups across Europe to develop and scale chemical recycling.
In addition to recognizing chemical recycling as a legitimate technology, we need legal recognition of the mass balance approach. This allows us to measure how much recycled or bio-based raw material goes into our supply, so we know how much of our product can be considered recycled or bio-based. Ultimately, it will help us realize our net-zero roadmap to reduce dependence from fossil feedstocks – increasing the use of circular and renewable carbon sources – which will keep carbon in the loop for a long time.
A good example of mass balance is the energy transition which has been made possible using a similar approach: energy companies sell renewable energy but not every electron comes from renewable sources. Importantly, the overall electricity system sells only as much renewable electricity as is actually produced. In this way, gradual scaling is possible with the existing infrastructure. It is important to utilize existing infrastructure to enable circular transformation in a cost-effective manner for consumers and with low environmental impacts. The energy provided comes from a mix of renewable and non-renewable sources which enable an ever-increasing share of renewable electricity.
Similarly, scaling up chemical recycling will only be possible if it can be seamlessly integrated into existing infrastructure. A mass balance accounting system would enable this. Recognizing it as a valid practice is currently in the hands of EU policy makers. Formal recognition will help maximize the use of recycled materials and meet EU recycling rates, as well as commitments made by multiple brand manufacturers, in a fast, traceable and efficient way. The approach adopted must be in line with the EU’s waste hierarchy – this means it must not allow the use of waste to fuel as recycling.
Scaling up chemical recycling will only be possible if it can be integrated seamlessly into existing infrastructure. A mass balance accounting system would enable this.
Plastic circularity will require investment in improving the collection and sorting of plastic waste to ensure access to high quality waste in large quantities. In this context, the cross-border movement of waste within the single market is important. Only a regulatory framework that is applied coherently across the EU can allow companies to maximize investment, foster innovation and preserve the global competitiveness of European industry for a circular and net-zero economy Is.
We look forward to policy-makers setting out a framework that will enable a rapid transition to a truly circular economy across the EU because the decisions we make today will shape the industry of tomorrow.